It's possible, especially since the DJIA and SPX have
not broken some of the major downtrends, however they
always could.
Still, The 5-Day RSI on the Dow on April 14 closed at
15.11. The RSI reaches oversold territory and suggests you
are near some sort of low when it falls below 30. That 5-Day
RSI reaches extreme oversold territory when it falls below
20, so we are in extreme oversold territory now. The 5-Day
RSI on the Nasdaq on April 14 closed at 11.21, the most
oversold reading since 10/8/98, the exact day of the mini-crash
closing low in the Nasdaq. On that day the 5-Day RSI closed
at 8.
The RSI cannot fall below zero so we are starting to run
out of room -g-
Also As I pointed out here Friday Afternoon the one day
trin reading was just about off the boards, closing at
4.31, .
Needless to say, that is a very high single
day reading. This is the highest single-day reading since
November of 1987, and usually single day readings that high
represent market inflection points, and hence a bottom.
We have seen more atypical market behavior this year, than
in any other year I have studied, maybe I'll get a chance to
summarize it a bit later this week.
John |
